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Festive Season Hiring 2026: Why Only 1 in 4 Seasonal Hires Stay, and How Leaders Can Change That

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Every year, my phone starts ringing a little earlier than the year before. This year, it rang in July.

 

The data backs that up. Research shows that 69% of employers had started, or expected to start, festive hiring by September, up from 34% last year. Workforce planning by August also jumped to 66%, from 40%.

 

Separately, industry estimates suggest temporary hiring could grow by 15-20% this season, while an estimated 2-2.5 lakh seasonal and gig jobs could be created between July and December.

 

But volume is not the real story. The real story is what happens after the season ends.

 

The Temporary Hiring Problem

 

Organisational readiness is the ability of an organisation’s people, leaders and structures to absorb change and turn it into performance.

 

Roughly three-quarters of this year’s festive hires will be fixed-term, contractual, temporary, gig or part-time. Only about a quarter will be permanent full-time roles.

 

I have watched this cycle for years in recruitment, and I’ll be honest: as an industry, we have treated festive hiring as a logistics exercise. Fill the warehouse, staff the store, manage the peak, release the workforce. Three months later, we spend time and money hiring for many of the same skills again.

 

Last year’s numbers showed the cost. Only 43% of employers considered their festive hires job-ready, while 71% said no-shows or attrition were common.

 

To me, that is not simply a talent shortage. It is also a trust shortage.

 

Candidates Are Telling Us What They Want

 

The most useful number in this year’s research is about candidates, not employers. Seven in ten workers would choose an offer that leaves the door open to longer-term employment. Only 13% would take substantially higher pay if it meant no chance of continuing.

 

Higher wages alone won’t win the season. A credible future will.

 

Another 32% of workers would accept a festive role of up to three months only if there is a clearly stated possibility of extension or conversion, while 31% will consider only longer-term or permanent work.

 

If a job post says “temporary, 60 days” and nothing more, it could become far less attractive to a significant part of the available talent pool.

 

What I’m Asking My Team to Do Differently

 

The encouraging part: 74% of employers now expect to retain at least some of their festive hires beyond the peak. The intent exists. Execution is where it falls apart. Here is how we close that gap.

 

  • 1. Hire for January, not just for Diwali. Before we source a single candidate, we ask clients which roles are likely to continue beyond the festive peak. Those roles get a conversion pathway built into the hiring plan.
  • 2. Put it in the offer. If conversion is possible, the candidate should hear it on day one, along with the criteria. Vague promises create attrition. Clear ones create commitment.
  • 3. Treat the season as a 90-day trial to evaluate talent before adding them to your permanent payroll. Identify top performers in real-world conditions and convert the best temporary hires into long-term talent.
  • 4. Look beyond the metros. Tier II and III cities are expected to contribute around 45% of festive hiring demand this year. Pipelines built there can serve clients long after the festive season ends.
  • 5. Get the basics right. Timely pay, predictable shifts and clear working conditions influence whether a candidate turns up and stays. They cost little and protect everything.

 

The Leadership Test

 
For recruitment leaders, festive hiring is no longer just a seasonal sprint. It is one of the most practical talent auditions of the year.

 
Every client that converts its best seasonal performers has an opportunity to shorten its next hiring cycle, reduce repeated recruitment and onboarding effort, and build a more dependable talent pipeline.

 
The festive season offers a clear view of how companies want to build their workforce. I would go a step further: it is a mirror.

 
It shows whether we see frontline workers as headcount or as future colleagues.

 
Started festive hiring? Turn seasonal hiring into an opportunity to build your long-term workforce. Let’s review your hiring plan for the season. Reach us at [email protected]

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